Budget 2015: KPMG questions purpose of Deed of Variation review

Budget 2015: KPMG questions purpose of Deed

Dermot Callinan, UK head of Private Client, comments on the Chancellor’s announcement in the Budget reviewing Deeds of Variation (DOV)

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Commenting on the Chancellor’s announcement in today’s Budget reviewing Deeds of Variation (DOV), Dermot Callinan, Tax Partner, UK head of Private Client, said:

“By identifying Deeds of Variation (DOV) as “tax avoidance” the Chancellor has focused on the potential tax consequences for those who undertake tax planning. There are many cases where variations are used simply to correct tax mistakes or use business and agricultural allowances on death, where a widow and other family members of the deceased want to make a change so that the estate can go to somebody else.

“Without DOV, executors will have to resort to the Courts who will become busier with “mistake” applications along the lines of the cases of Pitt-v-Futter and negligence claims against family solicitors.

“It is a shame that something that has been around for generations to enable the straightforward handling of estates between families has been questioned as a mechanism for tax avoidance.”

-ENDS-

 

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Chancellor’s Budget 2015

 

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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff.  The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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